US mortgage rates climb to their highest level since November

US mortgage rates jumped higher last week as uncertainty about the debt ceiling standoff sent bond yields rising.

           

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When Home Buyers compete with Mega-Corporations to buy a home, who’s going to win?
When prices get too high for potential purchasers, there’s always renting and when you need a roof over your head you sign the lease.
Investment firm Pretium Partners just paid D.R. Horton $1.5 Billion for 4,000 homes. Pretium already has over 100,000 rental homes. Since 2019, financial heavyweights like J.P. Morgan Asset Management, Blackstone, and Goldman Sachs Asset Management have helped bankroll an industry of more than two dozen single-family home rental companies that are snapping up existing properties—and building new ones too. Institutional capital is a big element driving the surge in single-family housing prices and rents across the US today with rising rents attracting even more investors. Profit is clearly the investors’ goal.
So how does the average Home Buyer compete with Corporate Buyers with cash and immediate closings for 100’s or 1,000’s of homes at a time? They don’t.
In the first quarter of 2023, Investors bought $27.5 Billion of homes. Rents have continued to increase and home prices are still rising. D.R. Horton and other Builders are building whole single-family subdivisions geared towards rentals for sale to Investors.
When Corporate Buyers capture the market, individual Home Buyers don’t stand a chance.




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